The trends in digital transformation are those that mark the path for companies and brands when adopting technologies and strategies aimed at increasing the impact on their sector.
Before starting our topic, we must make the concept clear, since not everything that involves technology is necessarily digital transformation.
Then, get to work!
What is Digital Transformation?
It is a process that refers to the adoption and investment that companies make to apply digital processes to improve performance, increase the scope, and guarantee better results by making structural changes and giving greater participation to technology.
However, simply having a Facebook page or blog does not mean being within the concept. It is a radical change in the routine operations of a company, where technology plays a fundamental role.
That is why today we will talk about the trends in digital transformation that are being implemented by the most productive companies in various sectors.
Trends in Digital Transformation
Next, we will show you 7 processes or activities that companies are implementing to increase performance.
1. Innovation Focused
Betting on adopting technology in a business cannot be done at first. Among the trends in digital transformation is the application of a unified digital strategy between business operations and the Information Technology (IT) sector.
Many experts recommend going through innovation cycles of up to 24 months, focusing on talent, operational model, executive attention and financing in a unique digital strategy that meets the needs of the company.
This is the only way to reduce the deficiencies that hinder the application of new technologies.
2. New Generation of IoT
The Internet of things or IoT , has served as a force to promote the adaptation of companies in new technologies.
Companies, very shortly, will be able to implement platforms that allow them to analyze large amounts of information from the entire IoT sector and use Artificial Intelligence (AI) and Machine Learning to improve decision making.
Companies like Microsoft and SAP have already invested billions in developing new and better “smart things” to optimize processes and reduce operating costs.
3. The Cloud is still a trend in Digital Transformation
The Cloud Computing has become one of the fields with more innovation and businesses. They are no longer just tools for storing data and running applications. They are used for IoT platforms, Machine Learning, augmented reality, Blockchain, video game streaming, and more.
Also, applications are driven by events and architectures, without the need of a server to allow the execution of small programs in light environments such as mobile devices or wearables – such as smart watches.
4. Cyber Security
Protecting user data in the cloud is the main headache of companies and is what has led them to develop new security and privacy strategies.
Companies must show clear processes to manage people’s data on customer service platforms, marketing, financial applications, product development and more. Protecting information and ensuring user privacy is one of the most important trends in digital transformation for the sector.
5. Companies without Data Centers
A few years ago, all medium and large companies had their servers to store the relevant information. But this has changed radically. More and more companies are migrating all their processes and data to the cloud. Therefore, public cloud providers are taking responsibility for the workloads and data management of companies.
Many claims that it is a more efficient way to obtain valuable data while leveraging the massive bandwidth of data centers. However, it is a trend of digital transformation that is in process. Experts estimate that within 3 to 5 years it will be normal in the market.
6. More AI
The focus of Artificial Intelligence (AI) is more than evident. The possibility of having processes that learn “alone”, virtual assistants, or fraud analysis has made it something that companies want to have.
There will be more and more integrated processes with AI to optimize business operations, from launching marketing campaigns, weather prediction, production automation, data analysis, among others.
7. B2B and E-Commerce Platforms
Companies are looking for new, more efficient ways to deal with their suppliers and distributors and, in turn, they want to provide companies with market data and protection in agreements that have no intermediation.
The business sector knows this and therefore has focused on developing APIs (Application Programming Interface) or application programming interface and technologies in the cloud and leaving behind the “secrets” in your data.
Furthermore, they have also focused on developing e-commerce platforms to establish direct contact with consumers and offer their products and services from anywhere. Electronic stores allow operating costs to be reduced, they operate 24 hours a day and it is not necessary to invest large amounts of money in infrastructure and inventory.
Therefore, if you do not have an online store and a B2B platform, what are you waiting for?
5 Pillar of Digital Transformation: Everyone Should Know
People can be the most critical part of the six pillars of digital transformation. Without the right ability or without zeroing in on your representatives, your organization will battle. We would like to say that leaders should put employees first.
As technology such as artificial intelligence, virtual reality, augmented reality, and e-commerce app development begin to make their way into our businesses, we cannot forget who we are. The key is to use this technology to create meaningful experiences that reach employees, customers and others on a deeper level, still connecting from person to person. It’s also important to remember that talent is still critical, even when advancement is part of the job. And all of your employees need to be on the same page to drive your digital transformation efforts.
Transformation and innovation are not the same. To change, there should be advancement. Development can be characterized as an unexpected sparkle of inventiveness that prompts the formation of something that changes the essence of your business. So the implementation of that something is transformation.
Innovation requires a space for open communication, collaboration and freedom to create. And innovation must be constant, your company must always work to promote its products or services. Innovation also fuels digital transformation by allowing an open space for problem-solving when the going gets tough.
As we all know, we can’t have any kind of transformation without change. It’s not possible. That is why change is one of the six pillars of digital transformation and not just a general theme. You must enter your transformation, understanding first-hand that change is inevitable and could be difficult. Communicate your expectations to your employees.
Develop a strategy to encourage change and deal with setbacks at the same time. Provide the tools and environment necessary for employees to embrace and succeed in this change. Doing so effectively will take you to the next of the five pillars of digital transformation.
Don’t forget about the employee experience either. Each connection your workers have with your organization is basic. Are the technological tools you provide helping them do their job? Does your culture make your workplace efficient and productive? The positivity of this experience has the potential to make or break that employee’s productivity and effectiveness for your business.
Digital Transformation can’t get by without the right organization culture. By creating an open space where employee & customer experiences reign, where people matter most, change is planned & innovation takes center stage. You will lead your organization into a culture that simply transforms itself.
These five pillars of digital transformation are the backbone of success. Focusing on these pillars in addition to technology will help your business stay ahead of the competition and avoid failure. Lay the foundation first, and you’ll become a leader in your industry in no time.
Pillars of Digital Transformation in Companies
We have already seen that digital transformation is not only for technology companies, nor should it be based only on one sector.
There is a common process that must be followed by everyone who wishes to start such a program & is based on three basic pillars:
With the increase in competition & the entire decision power in the hands of the consumer, the customer experience is essential to attract and retain who buys you.
Therefore, this is one of the pillars of digital transformation, and encompasses several aspects such as the following:
Segmentation of the Public
Based on people and data analytics tools, it is possible to segment the public based on various data & address leads in a personalized way.
Monitoring of social networks
Knowing what people think of the brand is another way to get honest feedback that leads to improvements in customer experience.
Loyalty to those who are already customers for making unique offers, aligned with their respective inclinations, is a trend that came to stay, represented by the methodology of Inbound Marketing in the later stages of closing the sale.
Simplified Sales Process
The current customer does not want complication, it is necessary to remove the barriers to facilitate the arrival until the purchase.
Strategies such as Premium support, SAC 2.0, and Customer Success ensure that the customer has all the needs removed all the time.
Convenience and identification
Attending to several channels and being consistent in the language are ways of creating identification with customers without neglecting convenience.
Despite not being as obvious as the changes in the customer experience, there are also many advantages to devote to the improvement of internal operational processes.
The feeling of doing the job more simply or efficiently gives extra motivation, increases productivity, and contributes to the good relationship of all. For that, some points need to be observed:
The faster and wider the communication between everyone in the company, the more agile the processes will be without wasting time.
Integrating different sectors, such as marketing and sales, is one of the best ways to broaden the concept of collaboration and make everyone work in sync.
It is much easier to follow directions when you understand the reasons and transparency leads to exactly that.
Data based Decisions
Data-based decisions are beyond discussion, in addition to having more opportunities to succeed. Only what works best should be maintained.
Last but not least, there is a change in business models, which gain new contours when the possibilities of the digital world are included.
If society, in general, is strongly affected by the evolution of technology, it becomes imperative to change the way of doing business.
That happens mainly through:
- Expansion of products and services: creating digital resources to expand the usefulness of a physical product or service is common and very efficient;
- Transition from the physical to the digital: physical stores that close the doors to give rise to e-commerce are perfect examples of that transition;
- Digital products from conception: SaaS companies, apps, and fintech application development company are some of the products and services that are already born digital and are very successful.
- Shared services: today there are rides or shared travel services (alô Uber!), Space rental (Airbnb) and there it goes, and that requires an immense integration between digital and physical.
The day for success: 3 steps you need to follow
If you got here, it is because you take the idea of transforming your company to get the most out of digital resources. Then, nothing better than to learn in a practical way what will be necessary to reach the end of that day with the objective achieved.
Trends in digital transformation show the perspective that companies have in their technology adoption processes. If something is clear, they are increasingly interested in developing the means to obtain valuable data & create marketing and efficiency strategies to achieve good levels of performance in their businesses.
They are 3 steps you need to take. Look what they are:
Visualize the digital future of the business
The first step is to see the possibilities that will open for your business to know if it is prepared to take advantage of the digital environment. With this, you will be able to set up an action plan, with each stage of changes until you reach the ideal point.
This should not be done alone, but with the help of other leading companies in the tech world.
Invest in digital initiatives and new skills
We already highlight here some of the digital initiatives that are part of the digital transformation, such as content marketing, but many others are worth exploring.
On top of that, be sure to help your team develop new skills, which will be important for digital transformation, such as persuasion.
Lead the Change
I already put a lot of emphasis on this in this post, but I will end by reminding you once again: the change must come from above, so don’t leave that transformation in charge of others.
You must take the initiative and establish a plan to lead its execution. If you do those, the results will come. The digital transformation is a complex concept that needs to start from the high spheres and spread through all the strategic decisions and processes of the company.
But there are plenty of reasons to invest in that now, and the best way to do that is by following the steps we’ve told you here. Then, get to work!